Iran names European, US firms it wants back to its oilfields

Iran named seven Western companies it wants back to explore oil in the country after international sanctions are lifted, including five European and two American firms. Contract terms will be announced in April 2014.

Total of France, Royal Dutch
Shell, Italy's ENI, Norway's Statoil, Britain's BP and US
companies ExxonMobil and ConocoPhillips will be welcome to work
in the country, Reuters reported Iranian Oil Minister Bijan
Zanganeh as saying.

Speaking to reporters at an OPEC meeting, Zanganeh said he had
already negotiated with some of the companies, but not yet with
the American firms.

"We had no limitations for US companies. Twenty years ago
there were limitations against them from their own
administration. For doing projects in Iran, we have no
limitations," Zanganeh said.

In reply to a question about whether Iran wants to see Chinese
and Indian companies working in Iran, he said: "Yes, but now
we are discussing with European [firms]."

Mehdi Hosseini, an Iranian official in charge of revising
national investment terms, said he hoped to introduce a new
contract model for foreign oil firms at a London conference in
the second week of April.

The US, Russia, China, Britain, France, and Germany have said
they will loosen trade sanctions on Iran if it promises to wind down its
nuclear plans under the Geneva accord.

However a western oil source from a company that had invested in
Iran said, "A removal of sanctions that would allow for
tangible progress for international oil companies is still at the
minimum 18-24 months away."

"The Iranians aren't under any illusions that they can draw
anyone in before the sanctions are lifted," said a Western
oil executive from another company previously involved in Iran.
"And most international oil companies will be careful not to
go one step too far before a final agreement is reached between
Iran and the West."

Iran has 18 percent of global natural gas reserves and the
world's fourth-largest proven oil reserves. Last week, Tehran
agreed at talks in Geneva to curtail its nuclear program in
exchange for gradual cancelation of international sanctions that
prevent western companies from doing business inside the country.

Tehran has been negotiating with potential investors in its oil
and gas sector for some time. Before the present harsh sanctions
were applied in 2010, several of Europe’s largest oil and gas
companies were ready to invest billions of dollars in the
country’s economy.

The economic blockade has already cost Iran some $120 billion in lost
revenues since 2010, the US Treasury has estimated.